internship report 2011

7/29/2019 Internship Report 2011

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Internship

Report

Bank Of Punjab

Main Branch


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SUBMITTED BY:

Rani Bakhtawer

MBA 4th Semester

DURATION:

25-AUG-2012 to 21-SEP- 2012

INSTITUTE:

HAILEY COLLEGE OF BANKING & FINANCE,

UNIVERSITY OF PUNJAB


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Acknowledgement:I am very thankful to Almighty Allah the most beneficent, the most mercy full who has

given the strength to complete this task. I am also thankful to branch manager and

operational manager respectively of the bank of Punjab 7, Egerton road. Without whose

guidance and support it would not have been possible for me to accomplish this

assignment.

Executive Summary:

I selected The Bank of Punjab main branch for my internship, as it has a large network in

Pakistan especially in Punjab and its serving the entire country. The bank provides a 24 hours

banking convenience with the large ATM network in country.

During my Six week internship at BOP main branch, I tried to learn the procedure of corporate

banking; therefore I spent more time working in Account Department, Clearing Department,

Remittance Department, Online Banking and cash Department and Credit department.

o

Account Opening department 2 weekso Clearing Department 1 week and 3 days

o Remittance Department 1 week

o Credit department 1 week

During My work, I tried to observe the flow of information, different cases or documents.I tried

to learn the procedure of and practices through discussion and asking question with the staff.


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History & Nature of BOP:

The Bank of Punjab was established in 1989 and was given the status of scheduledbank in 1994.

The Bank of Punjab is working as a scheduled commercial bank with a network of almost 272branches at all over major locations in the Country. The Bank provides all types of banking

services such as Deposits in Local Currency and client foreign currency, remittances,

and advances to business, trade, industry and agriculture. The Bank of Punjab has

indeed entered a new era of science to the nation under experience and professional hands

of its management. The Bank of Punjab plays a vital role in the national economy

through mobilization of hit her to untapped local resources, promoting savings and

providing funds for investments. The bank offers attractive rates of profit on all deposits,

opening of foreign currency accounts and handling of foreign exchange business.

Vision, Mission and values Statement:

Vision, mission, goals and values are key milestones for any organization.

Overall Vision:

The board of directors has approved the following vision, mission and values of thebank:

To be a customer focused bank with service excellence.

M i s s i o n S t a t e m e n t :

To exceed the expectations of our stakeholders by leveraging our relationship with the

government of Punjab and delivering a complete range of professional solutions with a

focus on program driven products and service in the agriculture and middle tire markets

through a motivated team


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GOALS:

To achieve this objective the bank aims to:

Ensure that its performance in all facts of its operations more than matches that

of its competitors.

Maintains a comprehensive range of domestic and international activities.

Maximize cont r ibut ions f rom i ts key sources o f persona lmachines brands representation and capital.

Be innovative progressive and the need of its customers with in the frame workof operational and prudent risk taker.

Act as a reputable efficient and responsible organization.

Pursue personal policies which recognize the aspirations andperformance of individual and which are suited to the devise levels of skills

Our Core Values:

These are the values we celebrate;

Nationalistic : Concerned about our people and our land

Trusting: We believe in building strong relationships with our customers

Reliable: We believe our customer are number one:

Optimistic: We have a positive outlook for the future

Forward looking: Always expecting the best possible outcome


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Professional: We are passionate about giving our customers a world-classservice

Caring: Have genuine concern for the well-being and success of customers

and colleagues:

Organizational Structure:

Bank of Punjab is mainly divided into two main heads, Divisions and Departments.

Under the head of division department several further departments are working. These

include administration, operation, business development and others etc.

Main Offices:

Head Office and the main branch of BOP is in Gulberg 3, Lahore & Egerton, LahoreRespectively. The Bank has been divided into seven regions Each consisting a numberof branches.

Rest are the branches working under these regions. Which are almost 270 in all over

Pakistan.

LAHORE REGION: In Lahore region The Bank of Punjab have 65 branches out of

which 11 branches are dealing in foreign exchange

FAISALABAD REGION: In Faisalabad region The Bank of Punjab have 38 branches,

out of which 4 branches are dealing in foreign exchange.

GUJRANWALA REGION: In Gujranwala Region, there are 45 branches. In this region

5 branches are providing foreign exchange banking facility.

RAWALPINDI REGION: In Rawalpindi region BOP have 41 branches with 4 branches

dealing in foreign exchange.


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MULTAN REGION: In Multan region Bop have 60 branches, out of which 7 branches

are providing the foreign exchange services facility.

KARACHI REGION: There are only four branches in this region. All these branches are

dealing in foreign exchange branches.

Learning in Departments:

ACCOUNT OPENING DEPARTMENT:

Bank and customer relationship starts with the opening of account so it is very sensitive

department. I start my internship with account opening department and spend ten days

under the supervision of the account opening officer. Here I learnt lot of things which

are as follow

How to fill the account opening form of the individual/joint account or a company

Documents which are necessary for the different customers to open an account

like for individual CNIC card is enough for sole proprietor NTN number or

introduction of any BOP staff person whichever is available is compulsory.

Different types of stamps for different forms like signature verified stamp,

signature admitted stamp, original CNIC seen stamp in case of the account ofilliterate person Mark of identification stamp, signature affix in my presence and

verified stamp.

Verisys from NADRA to cobfirm the person identity

NAB and office of foreign asset control list(OFAC)

Signature specimen card(SS card)

How to close the account.

Check filling

Deposit slip filling


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CLEARING DEPARTMENT:

I worked in clearing department for one week and 2 days.

I learnt there about different kinds of clearing. I was told there the main objective of the

clearing. i was told in this department about the different types of clearing in which THE

bank of Punjab deals and about there stamping. The bank of Punjab Deals in the

following types of clearing:

Normal/ Local clearing

Same day Clearing

Intercity clearing

Outward bill of collection(OBC)

The Bank Of Punjab charge fee against the Same day clearing and against the cheques

which are dishonored. During the work in clearing department I also learn the different

types of stamps for clearing

o Stamps for Normal Clearing

Crossing stamp at the face of cheque.

Clearing stamp of the next working day at the face of the cheque.

Discharge stamp at the back of the cheque with officer signature.

o Stamps For Same Day Clearing



Discharge stamp at the back of the cheque with officer signature

Same Day Clearing Stamp at the face of the cheque.

o Stamps for Intercity Clearing



Discharge stamp at the back of the cheque with officer signature


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Intercity Clearing Stamp at the face of the cheque

o Stamps for outward bills of collection


Clearing stamp of the next working day at the face of the cheque. Discharge stamp at the back of the cheque with officer signature

TERM DEPOSIT AND RECEIPT

During my internship I also avail the chance to study the different term deposit schemes

of the bank of Punjab main branch Lahore. I spend three days hare and learn the

procedure of fixing the money.

Customer can fix the money either in cheque of cash form

A form is filled and signed by the customer along with SS card.

A certificate is given to the customer normally Pay order against the cheque or

cash which ever is presented for fixing the money.

If the customer want to withdraw the money before the time period specified he

has to fill the form and sign it

After completing the formality amount is credited in the customer account along

with the profit.

PRODUCT LINES:

Deposit Product(s):

Current Account:

The Accounts shall be opened upon submission of duly filled-in Banks prescribed

Account Opening Form properly introduced in the manner provided and on submitting

all such documents as may be revised by the Bank. The Bank reserves the right to

demand such relevant documents even after opening of account as deemed necessary.

The Bank has the right to refuse to open an Account without assigning any reason.


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The Accounts shall be opened with an initial/minimum deposit as stipulated by the

Bank from time to time unless specifically exempted.

A distinctive number shall be allotted to every account and this number should be

quoted in all correspondence relating to the account and at the time of making a

deposit or withdrawal. The Bank reserves the right to change the Account Number or

any part of it in order to meet its book keeping/administration requirement. However,

intimation of change in the account number shall be sent to the account holder.

The Accounts may be opened singly in one name or jointly in two or more names.

Deposit may be accepted from minors provided the account is opened and operated

through a guardian. The Account thus opened will continue to be operated upon by

the guardian even if the minor attains the age of majority.

All monies/instruments to be deposited in an account should be accompanied by a

pay-in-slip showing the title and number of the account.

Withdrawals will not be allowed against post dated (payable on any future date)

and stale (06 months after issuance date) Cheques and against un-cleared funds.

Basic Banking Account:

The minimum initial deposit will be Rs.1000.

No profit will be Payable.

No fee (service charges) for maintaining such accounts will be charged.

There will be no limit for maintain minimum balance. In the cases, there balance in

BBAs remaining "NIL" for a continuous 6 month period, such accounts will be

closed.

Account holder will be allowed a maximum of 2 deposit transactions and 2 checking

withdrawals, free of charge either through cash/through clearing per month

otherwise service charges of a regular banking account shall be applicable for that

month as per Bank's Schedule of Charges.


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PLS Account: The Accounts shall be opened upon submission of duly filled-in Banks prescribed

Account Opening Form properly introduced in the manner provided and onsubmitting all such documents as may be revised by the Bank. The Bank reserves

the right to demand such relevant documents even after opening of account as

deemed necessary

The Bank has the right to refuse to open an Account without assigning any reason.

The Accounts shall be opened with an initial/minimum deposit as stipulated by the

Bank from time to time unless specifically exempted.

A distinctive number shall be allotted to every account and this number should be

quoted in all correspondence relating to the account and at the time of making a

deposit or withdrawal. The Bank reserves the right to change the Account Number or

any part of it in order to meet its book keeping/administration requirement. However,

intimation of change in the account number shall be sent to the account holder.

The Accounts may be opened singly in one name or jointly in two or more names.

PLS-Saving Profit plus Account:

Individuals, corporations, organizations and various provincial / federal government

departments can open accounts under the scheme.

This is an operating/cheque account.

The accounts can be opened in individual or joint names.

The deduction of Zakat and Withholding tax will be applicable as per law of the land.

Profit payable on half yearly basis.


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Consumer Financing Schemes:

Existing schemes:

BOP House Loan Scheme.

BOP Car Loan Scheme.

BOP Quick cash scheme.

BOP Smart Cash Personal Loan.

BOP Aasaish Loan Scheme.

BOP Motorcycle Leasing Scheme.

BOP House Loan Scheme:

The government of Pakistan has desired that bank should launch housing schemes for

all segments of society particularly low& middle classes. State bank of Pakistan has

also amended its policy on housing finance to facilitate banks in developing and

marketing their housing finance products.

Purpose:

BOP house loan term finance facility for purchase of house/ flat or construction of house

on self owned plot or for renovation/ home improvement.

Target Market:

Salaried Individuals (SI)

Self Employed Professionals (SEP)

Self Employed Businessmen (SEB


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BOP Car Loan Scheme:

In order to equip our field force with new products of financing for credit expansion and

in line with the policy of state bank of Pakistan for consumer financing, our bank islaunching car loan scheme. This scheme will also overcome the competition of other

bank and will also meet the growing demand of our customers/ general public.

Purpose:

BOP car loan is a lease facility for purchasing brand new locality manufactured/

assembled car for personal use & light commercial vehicles. The light commercial

vehicles are available only for corporate customers.

Target markets are;



Self Employed Businessmen (SEB)

Security:

Car will be registered in the name of Bank as per lease agreement.

Comprehensive Insurance Policy (Insurance Certificate/policy will be sent directly to

the branch by the Insurance Company).

Post Dated Cheques as per the repayment schedule.

Three (03) undated cheques of marked up amount (Principal + Mark-up) Any

additional guarantee, if required as per the contents of the approval letter.

BOP Quick Cash Scheme:

Description:

The state bank of Pakistan has been emphasizing to promote consumer financing in

Pakistan. This has importance as it is strongly linked with the growth of industrial and


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trading activities in the country. SBP has followed bank to provide financing facilities to

general public for purchase of locally manufactured customer durable.

In order to meet the other objectives the bank has decided to launch a new scheme

under the name and style of BOP quick cash.

Purpose:

BOP Quick Cash is personal running finance facility for Salaried Class for meeting their

day to day personal needs

BOP Smart Cash Personal Loan Scheme:

Purpose:BOP Smart Cash Personal Loan Scheme is personal DF facility for meeting personal

needs & repayable through monthly installments.

Target Market: Salaried Individuals (SI)


Security:

Departmental Undertaking (waived for Govt. Officers of grade 17 & above and

executives of corporate clients)

Two Personal Guarantees of employees of equivalent/senior grades to the client or

where no equivalent/senior grade officer is available then Personal Guarantee of

two officers of grade 17 or above shall be obtained. (Financial commitment of

Guarantor should be established through E-CIB report & Salary Slip/Employer

Certificate/Bank Statement).


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BOP Aasaish Loan Scheme:

Further to our four new computers finance scheme launched recently, we are pleased to

announce for another new scheme titled BOP Aasaish loan to meet the demand of

general public.

BOP Aasaish Loan is personal loan facility for banks target market for the purchase of

Consumer durable goods for their personal use, repayable on easy installments".

Target Market:



Self Employed Businessmen (SEB)

Eligibility Criteria:

Eligibility Criteria for BOP Employees:

Age between 21 and 59 Years or retirement date; whichever is earlier (59 Years at

maturity of facility).

Minimum Take Home Salary is Rs.7,000/-

Permanent Employee with Minimum 01 Year of job Experience.

Contractual Employees are also eligible but loan should be adjusted before 03-

months of the expiry of contract.

Maintaining Salary Account in any bank.

Have valid CNIC.

Security:

Post Dated Cheques.

Life Insurance of Borrower.

Three (03) undated cheques of marked up amount (Principal + Mark-up).

Any additional guarantee, if required as per the contents of the approval letter.


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Special Instructions:

The guardian will continue to operate the account even if minor attain the age of

majority.

Documents:

a) Computerized national Identity card of guardianb) From B OF minorc) In case guardian is appointed by the court of law then attested copy of

guardianship certificate be obtained and placed on record.

Illiterate Person/Photo Account:

Before opening such account the illiterate person should be informed that he/she cannot

issue Cheque in favor of any other person.

Documents:

a) Copy of Computerized National Identity Cardb) Two attested photographs to be obtained for pasting on AOF and other on

specimen signature Card.

c) Thumb impression.Male--------Left Hand Thumb Impression

Female-----Right Hand Thumb Impression

Joint Account

These are the account of two or more persons who are neither partners nor trustees.

Accounts Opening Procedure:

Title of account:-

Title of account holder should mention the names of all the joint account holders.


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Account Opening Procedure:-

Title of account should mention the name of the person who operates the

account.

At the time of opening the account clear and specific instructions should be

obtained regarding the nominee of the account holder means after the death of

the account holder who will operate the account.

Documents:

a) Computerized national Identity Card.b) Proof of income if he /she is a salaried person then he pay slip or salary

certificate of that person.

Proprietorship Account

When the owner of the firm operating singly, he can open an account in his firm name.

Title of Account:

Title of account must be in the name of the proprietorship concern.


In case of proprietorship concern, the special instruction should cover the style of the

account and the name of the person who will operate the account as sole proprietor .for

example, f the account to open is in the name of Islamabad cloth store the person who

is the sole proprietor should declare as such


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Documents:-

a) Computerized National Identity Card (CNIC) of proprietor.b) Declaration for proprietorship concernc) Proprietorship stampd) Letter of request to op en the account on the letterhead of proprietorship.e) Third party Mandate, in case any other person has been authorized by the

proprietor to operate the account.f) National Tax number (NTN) but it is optional.

Partnership Account:

Partnership is a relationship between persons who have agreed to share profits of a

business carried on by all or any of them acting for all.

Account Opening Procedure:

Title of Account:

Title of account must be in the firm as declared by the partners.

Operational Instructions:

Operations on the account must be allowed strictly in accordance with the instruction

given in partnership mandate and declaration (Part III) In terms of section 25 of

Partnership Act 1932 according to partnership deed, if given.

Documents:

a) Copy of Computerized National Identity Card of all the partners.b) Copy of registration certificates (if a registered firm)c) Letter of request to open the account on the letter of head partnership.d) Partnership Stamp.e) Partnership Deed.f) Third Party Mandate, if third party is authorized to operate the account.


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g) NTN (optional).

Limited Companies Account:

Section 2 of the companies Act1913, define companies as:

An association of individuals for the purpose of profit, possessing a common capital

contributed by the members constituting it, such capital being commonly divided into

shares; of which each possess one or more and which are transferable by the owners.

Title of Account:

Title of account should be exactly in the same name and style as mentioned on the

memorandum and article of association.

Special Instruction:

All the special instructions should be given to the bank in the form of Resolution of

Board of Director.

Documents:

o Computerized National Identity Card (CNIC) the Director attested by companyCEO

o Resolution of Board of Directorpassed under Companys seal to open account.o Memorandum and Article of Association.o Certificate of Incorporation Form 29 (B) (LATEST COPY). Company secretary

will certify all these copies.o List of directors and authorized signatories.o Certificate of commencement of business (for Public Limited Companys only).


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Agent Account:-

Title of Account:

Account must be opened in the name of agent.


o Manager should ensure compliance of contract between principle and agent.o Agent cannot delegate powers to third party.o Transfer between principle and agent account should be in accordance to

agreement.o In case of death /insolvency /insanity of principle agency transaction are

automatically terminated.

Documents:-

o Attested photocopy of Computerized National Identity Card (CNIC) of the agent.o Certified copy of power of attorney.

Account of Club Societies And Association:

Account Opening Procedure:

Title of account:

Account must be opened in the name of organization in the following manner:

e.g. Karachi Cricket Association

Operational Instructions:

o All the parties must be in accordance with the clauses of the resolution. In caseof death of officer bearer, account should be blocked until new resolution isreceived.

o Copy of bye-laws /regulation Like of members of managing/executive committee.


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o Copy of certificate of registration(if registered)o Copies of CNIC are of the members of Executive Committee.o List of names of official authorized to sign on behalf of the organization along

with the specimen signature under the signature of the secretary of theclub/society.

BOP ATM / Debit Card:

BOP Apna Cash Card is an ATM plus Debit Card:

1. The front of the card will have the following matter on it:

Card Holders Name

International Bin Number (6 Digits - XXXXXX)

Card Number (YYYYYYYYYY) (total IMD+CARD num has to be = 16)

2. The back of the card will have:

Magnetic Strip

Signature Panel

Conditions of Usage

M-Net and M-Net logo

Service(s):

The BOP Debit Card holders will be able to transact at any of the 1000 + Merchants

across the country. The following services can be utilized at the Point of Sale (POS)

terminals:

Purchasing:

Your BOP Debit Card can be used in place of cash at all outlets where the M-Net logo is

displayed. This is a service which lets you pay directly from your account without using

cash. When a payment is made through the debit card, your account is directly debited.


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Balance Enquiry:

The Point of Sale (POS) terminal also lets you view your balance of all the linked

accounts to your card.

Sites:

BOP Debit Card Holders can transact at any of M Net merchant locations country wide.

These POS terminals are available at Shopping Malls to Petrol Stations. The list of

country-wide merchants is attached as Annexure I. All merchants who display the M-Net

logo will accept the BOP Debit Card.

Customer Eligibility:

The ATM Card will be issued to Savings and Current Account holders who maintain

their accounts with the bank and in terms of the account opening documentation are

authorized to operate the account singly or jointly.

For Joint Accounts, which are operated on the signature of any one of the account

holders, ATM / Debit card can be issued. The joint accountholders will be jointly &

severally liable for any transactions processed by the use of the cards and the terms

and conditions as laid down shall be jointly & severally binding on all account holders.

Cards will not be issued on the following accounts:

Any non-personal account i.e. Companies, Organizations, Trust Account,

Government account and Collection account etc.

Dormant, inoperative, blocked or restricted accounts.

Accounts with NIL balance.

Term Deposit Accounts.

photo for operation (illiterate accounts). ATM/Debit cards can only be issued on

LCY.


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Use of Electronic Media In Decision Making:

Electronic data gives exact values and figures which top level

management required. Because of electronic data they came across to

know those minute things which impacts a lot on final place. Through

this they can measure exact profit and loss accounts, assets and

liabilities up to a branch level from where they can decide which

should be kept and which should not. Through this top level

management is able to decide which product should be taken into

course for further level or which should stop. Electronic data make

management able to take decision at any point of time.

Following software are used in The Bank of Punjab

BOP 2001 is used for transactions

Symantic antivirus

SWIFT software is used for foreign remittances VERISYSES is used for the recognition of the person from NADRA

NAB

Office of foreign asset control list(OFAC)

Kyc for risk evaluation


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FINANCIAL ANALYSIS

BALANCE SHEET of LATEST FIVE YEARS (000)

2011 2010 2009 2008 2007

Cash and balances

with treasury banks

16,698,333 14,069,601 13,043,705 10,685,057 14,210,302

Balances with other

banks

3,607,107 3,276,234 2,185,782 2,178,455 1,927,662

Lending to financial

institutions

7,447,375 7,309,587 1,053,550 633,333 2,450,000

Investment 92,581,306 56,402,954 57,960,105 22,711,980 73,461,693

Advances 127,129,501 120,818,021 121,315,799 131,731,158 133,899,143

Operating fixed

assets

3,597,483 3,534,660 3,427,267 3,471,838 3,252,759

Deferred tax assets 13,886,769 14,063,694 11,921,146 8,388,162 -

Other assets 16,049,657 9,715,522 5,762,509 6,109,137 5,789,116

Total assets 280,997,531 229,190,273 216,669,863 185,909,120 234,990,675

Bills payable 850,569 581,100 875,618 1,219,801 93,7647

Borrowings 24,963,566 11,526,783 1,404,014 12,278,773 17,842,915

Deposits and other

accounts

237,896,700 208,176,988 190,858,215 164,072,532 191,968,377

Subordinated loans - - - - -

Liabilities against

assets

7,831 13,887 19,907 30,632 40,321


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Deferred tax

liabilities

- - 2,205,530

Other liabilities 6,506,275 5,223,045 4,700,166 4,564,257 2,983,977

Total liabilities 270,224,941 225,521,803 210,493,920 182,165,995 215,978,767

Share Capital 5,287,974 5,287,974 5,287,974 5,287,974 4,230,379

Reserves 1,914,956 2,012,492 573,779 7,427,232 7,427,232

Unappropriated

profit

- - - - 3,468,956

Accumulated loss (14,067,841) (14,352,989) (10,330,839) (7,658,686) -

Share deposit

money

17,000,000 10,000,000 10,000,000 - -

Surplus/(Deficit) on

revaluation of

assets

637,501 2,947,477 645,029 (1,313,395) 3,885,341

Total owners equity 10,772,590 3,668,470 6,175,943 3,743,125 19,011,908

Figure 1- Balance sheet of latest 5 years

Income Statement of The Latest Five Years(000)

2011 2010 2009 2008 2007

Mark-

up/return/interest

earned

20,685,011 18,220,175

15,641,832 17,752,969

17,539,538

Mark-

up/return/interest

expensed

21,073,271 18,801,642

19,022,494 16,614,000

13,939,377

Net mark-up/

interest income

(388,260) (581,467)

(3,380,662) 1,138,969

3,600,161

Provision against

non-performing

(3,164,234) 559,604

9,241,653 18,863,580

1,616,421


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loans and advances

Provision for

diminution in the

value of investments

531,654 2,760,724

941,183 366,387

24,479

Bad debts written off

directly

- -

- -

246,869

Net mark-up/

interest income after

provisions

2,244,320 (3,901,795)

(13,563,498) (18,090,998)

1,712,392

NON MARK-

UP/INTEREST

INCOME

Fee, commission

and brokerage

income

724,499 561,688

657,114 577,630

659,488

Dividend income 286,375 402,779920,943 2,020,896

1,812,870

Income from dealing

in foreign currencies

160,089 134,488

247,570 324,328

377,233

Gain on sale andredemption of

securities

330,025 293,303

(124,238) 733,787

2,039,535

Unrealized gain /

(Loss) on

revaluation of

investments

classified as held for

trading

(5,383) 18,020

(1,193) -

-

Other income 494,103 473,055518,553 526,185

547,635

Total non-

markup/interest

1,989,708 1,883,333

2,218,749 4,182,826

5,436,761


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income

NON MARK-

UP/INTEREST

EXP.

Administrative

expenses

3,954,066 3,426,329

3,028,377 2,799,933

2,255,342

Provision against

lending to financial

institutions

1,121

- 10,101

-

Provision against off

balance sheet items

(244,111) 740,000

- -

292

Other charges 205 1,605794 114,700

37,950

Total non-

markup/interest

expenses

3,711,281 4,167,934

3,029,171 2,924,734

2,293,584

Extra

ordinary/unusual

items

- (6,186,396)

- -

-

PROFIT/(loss)BEFORE

TAXATION

522,747 (6,186,396)

(14,373,920) (16,832,906)

4,855,569

Taxation current 207,600 170,700

Prior years - -78,491

1,052,000 (19,921)

Deferred 174,774 (2,157,119)(4,383,406)

(8,033,001) 250,772

PROFIT/ (loss)

AFTER TAXATION

347,973 (4,029,277)

(10,069,005)

(10,059,505) 4,454,018

Accumulated loss/

unappropriated

profit Brought

Forward

(14,352,989) (10,330,839) (7,658,686) 3,452,842 3,226,961


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Transfer to statuary

reserve

(69,595) 2,894,000 (1,057,595)

Transfer from

surplus on

revaluation of fixed

assets - net of tax

6,770 7,127 7,502 5,572 5,866

Accumulated loss

carried forward

(14,067,814) (14,352,989) (261,834) 2,400,819 -

Profit available for

appropriation

- - - - 7,686,845

Basic Earnings/

(loss) per share

Rupees

0.66 (7.62) (19.04) (19.02) 10.53

SWOT Analysis

SWOT stands for strength , weakness ,opportunity ,Threats. Strength and weakness is

internal and opportunity and threats are external. So we can say SWOT analysis is the

internal as well as the external analysis of the organization. SWOT analysis of the BOP

is given as follow:

STRENGTH

BOPs branches are scattered all over the country to provide services to their

customers.

Unlike the many other bank BOP deals with every customer. Either a salaried

person or High profile customer.

BOP provides cheque book and ATM within A week which is very efficient as

compare to other banks.

In the BOP account is opened within the day while some banks take a week for

the process.

The branchs employees are very polite and deal the customers as thy are their

own people.


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Bop is the punjab government bank so it enjoys some political benefits as well.

In the syndicated loan to agriculture Bop share is most of all the other banks.

The branch staff is very talented and hardworking

WEAKNESSES

Formalities in the branch are very high. For example to open a account customer

has to sign at least 15-20 times on a form which irritates them.

The online system of the branch is poor. Some time customer has to wait 2-3

hours to avail the services.

Charges in the branch are very high. For example like the other banks BOP does

not provide free clearing service, free cheque book And etc

The IT facilities in the branch are very poor. Systems are out of age which delays

the process.

In the branch employees are overburdened. A single person is performing 3-4

duties at a time

OPPORTUNITIES

BOP can extend its customer base by increasing the no. of branches in other

cities.

Product Development: Introduction of new products and service in

other segments and markets (mobile banking, credit cards)

International Market: BOP can venture into the international market

and extend its network

Aggressive Strategy: BOP can use aggressive marketing techniques to

increase its market share


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THREATS

The competitive environment of the bank is very hostile and aggressive

Government being the major stock holder of the bank can release

itsshare to some other party and stop supporting the bank

The economic condition of the country are not stable

political instability is also very dangerous for the bank as it is semi

government organization.

BOP is los ing i ts market share to the comp le t ion due to

t ra d i t ion banking practice

Conclusion

The Bank has recovered much faster after a major shock, now it is traveling on t h e

r o a d o f s u c c e s s w i t h a s t e a d y p a c e . I t i s c o n t r i b u t i n g a l o t

t o w a rd s t he i n du s t r i a l deve lopmen t and m id t i e r segmen t o f t he

Pakis tan s economy. As ide f rom the genera l banking, the development

of the agricu lture sector of Pakistan is a phenomenal objective which no other

financial institution has yet achieved with such success. The Bank of Punjab has

always strived to remain in the line of leading banks and has consistently

shows steady growth in every aspect of its solutions. The vision and mission

of the Bank of Punjab are true image of its existence


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Recommendations:

BOP top management should have to revise the formalities in order to facilitate

the customers.

The charge on different services should be revised to compete the market.

The IT facilities should be improved.

The ATM machine has to be replaced as early as possible

In the branch staff workshops should be organised for technical knowledge.

The management has to take serious steps to recover the loans.

The pressure of work and shortage of time creates negative effects; BPOs

management should provide adequate facilities and allocate sufficient staff

according to the requirements of each branch.

Bop should launch bank cheque books to attract the customers.


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